The sweet price of the yen reappears! With uncertainty over election tariffs, the yen is likely to depreciate to 155.

The sweet price of the yen has reappeared, with several analysts estimating that the USD/JPY could break through to a level of 150~155, challenging the high point of February this year.

The Japanese general election puts pressure on the yen, which has fallen to its lowest level since April.

Several local media polls in Japan indicate that the ruling coalition led by the Liberal Democratic Party may not be able to maintain a majority of seats. However, regardless of the election results, government spending seems likely to increase. To attract voters, the Liberal Democratic Party is introducing cash subsidies, while the opposition is pushing for a costly plan to reduce sales tax.

Concerns over fiscal policy have pushed Japan's government bond yields to a multi-year high. However, election anxiety has also put pressure on the yen, which has fallen to its lowest level since April this week. Yen/USD short-term options bets have turned net bearish this week, marking the first such occurrence in nearly a year, indicating that the yen may face greater pressure.

The Japanese House of Councillors election will be held on Sunday, July 20, (.

Analysts call for the yen to depreciate to 155, with tariffs being the next hidden concern.

President Trump's tariff policy has similarly had a significant impact on the Japanese yen, casting a shadow of uncertainty over the direction of the Bank of Japan's policies. According to the latest data from the U.S. Commodity Futures Trading Commission as of July 8, the yen has weakened against all major currencies over the past three months, with leveraged funds reducing their long positions in the yen to the lowest level since early April.

Akira Moroga, Chief Market Strategist at Aozora Bank, stated that the selling of the yen related to the Senate elections was caused by speculative traders closing their long positions on the yen.

Shoki Omori, chief strategist at RHB Securities in Tokyo, stated that if the ruling coalition loses a significant number of seats, the USD/JPY exchange rate could rise to 155, reaching its lowest level since February.

With the expansion of fiscal spending, the market may lose confidence in the yen.

However, some analysts believe that if the results of the Liberal Democratic Party elections are better than expected, it will be good news for the yen. Omori from Mizuho Securities stated that if the ruling coalition maintains a majority, the USD/JPY exchange rate may fall back to around 144.

However, as the August 1st tariff deadline approaches, the outlook for the yen may depend more on trade negotiations with the United States. Attention will turn to how Shigeru Ishiba negotiates with Trump on tariff issues.

This article discusses the sweet price of the Japanese yen reappearing! Due to uncertainty in election tariffs, the yen is expected to depreciate to 155. Originally appeared in Chain News ABMedia.